Laserfiche WebLink
<br />.. <br /> <br />. <br /> <br />() <br /> <br />~ <br />/]'\~ HILLS <br /> <br />MEMORANDUM <br /> <br />DATE: <br /> <br />August 10,2005 <br /> <br />Agenda Item 2.B <br /> <br />TO: Honorable Mayor and City Council <br /> <br />FROM: Murtuza Siddiqui, Finance Director/Treasurer "yVlS <br /> <br />SUBJECT: 2006 Budget Discussion - Continued <br /> <br />BACKGROUND: <br /> <br />. <br /> <br />At the Junc 20, 2005 Work Session, the Council provided staff with general guidelines to initiate <br />work on a Preliminary 2006 Budget. At this meeting the Council provided the following <br />guidelines: <br />1, Salaries - 2.75% increase. <br />2. Inflationary increases for routine operations, <br />3. Budget for increase in employee insurance premiums. Staff indicated that based on the most <br />recent information from the insurance brokers, it is anticipated that premiums can increase by <br />15%, Staff also mentioned that in the past, the City and staff split equally the increase in <br />premiums, It was mentioned that currently the City contributed $533 per month, <br /> <br />With regards to operating levy, the 2005 Legislature looked at various options but concluded <br />with no levy limits - similar to last year; therefore, the City is not under any legislative <br />restriction with regards to establishing a levy, Last year, a number of cities used this "no limit" <br />opportunity to set a high levy, The average levy increase for Ramsey County cities was slightly <br />under 8%, Arden Hills' City Council limited thc levy increase to 4% from prior year. The 2005 <br />levy is $2,426,670, <br /> <br />DISCUSSION: <br />Staff had intended to provide a working budget documcnt to the Council at this session, but due <br />to unforeseeable circumstances and pending the outcome of decision with regards to the CIP <br />discussion, we are unable to provide detailed information at this point, however, we plan to <br />providc a preliminary budget in September. As part of the budget preparation process, staff is <br />analyzing utility and fuel costs, They are exploring options to contain the costs, <br /> <br />Currently, with regards to revenue collection, we are anticipating a lower collection amount in <br />. thc area of building permits, The activity in the building permitting area has bcen reduced <br />