CCP 09-11-2006 - Laserfiche WebLink

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ARDEN HILLS CITY COUNCIL - AUGUST 21, 2006 8 2. Since the July meeting, the City was notified that our health insurance premiums will increase 7%, which is significantly less than the 20% we projected. The 7% figure has hccn included in the preliminary budget document. The summary includes the 2007 CIP proposals as reflected in the CIP program outlined in Item 2B of the August 21 Work Session. Other employee benefit rates have been included and the City is not expecting any significant changes to those numbers. Utility rate changes and rate increases (i.e. water) have been included. - 3. 4. 5. City Administrator Michelle Wolfe noted if the council adopts a preliminary levy of 4%, this will translate into a $100,949 increase from 2006 budget. The preliminary levy needs to be certified to Ramsey County by September IS, 2006. City Council approval of the preliminary levy can be done at the August 28th or September I I th meeting. At the July Work Session, the City Council directed staff to assume a 4% levy increase for purposes of preparing the hudget. At this time, City staff is recommending that the preliminary levy, at a minimum, include a 4% increase. Staff believes the 4% levy would cover the City's estimated expenditures in 2007. The 4% increase would leave minimal savings for the City to cover any unexpected costs that may arise next year or for future capital expenditures. A final levy will be established and certified in December. Ouce a preliminary levy is established, the amount can be reduced, but it cannot be increased. Mayor Aplikowski suggested that the City Council adopt a preliminary levy of 6%. The City Council could always drop the final levy down to 4% if desired by the City Council. City Administrator Wolfe said that she is also concerned about future public safety capital expenditures. . Councilmember Grant recommended a 4% levy for 2007. Councilmembcr Larson supports the idea of a 6% preliminary levy. It will give City Council and City staff more time to review the needs of the City. Mayor Aplikowski said that it is important for the City to have a cushion to address unexpected costs that may arise next year. A majority ofthe City Council was in agreement that the preliminary levy should be set at 6%. This itcm will be discussed further at the September 11 th City Council meeting. Members oftl1e City Council requested information regarding the City's previous levies and information regarding the proposed levies for other neighboring communities. Auditor's RFP Report/Recruitment Update- City Administrator Michelle Wolfe provided members of the City Council with an overview of the Auditor's RFP process. Members of the City Council directed staffto conduct a Request-for- Proposals (RFP) process for the City Auditor. The City has had the same firm as City Auditor .