01-10-07-PC - Laserfiche WebLink

Home Browse Search

ARDEN HILLS CITY COUNCIL- Novcmber 20,2006 Mr. Ruff notcd that the financial management plan was based upon thc financial information providcd by the City for the fiscal years 2005, 2006, and 2007. Also, the projected model docs not take into considcration thc effect TC AAP or increased building pellllit revenue may have on the City's tax base if the land purchase is completed, Councilmcmbcr Holden asked where the revcnuc from the fraud case will be allocated. City Adminsitrator Wolfe said that it is at the Council"s discretion whcre the moncy is allocated. The City Auditor booked thc claim payment as 2005 revenue, Mayor Aplikowski noted that the City's goal and purchasing attitudc will also impact the City's financial philosophy in thc future, Mayor Aplikowski thankcd Ehlers & Associates for providing the City Council with an update on thc draft financial management plan, City Administrator Michelle Wolfe provided the City Council with an overview of the proposed 2007 budget. At the September 11,2006 meeting, the City Council approved a preliminary tax levy amount of 52,675,161, which rcpresents a 6(% increase from the 2006 levy. At the Dcccmber 11 th City Council meeting, Council will be asked to approve a final 2007 tax levy as well as a 2007 Budget. Thc tax levy cannot be incrcascd from the preliminary levy amount; it can be decreased. Based upon previous discussion with the City Council, the 2007 budget was prepared \vith the followi ng assumpt ions: I. Salaries arc based on thc existing compensation plan and a 2.750/;) annual adjustment on January l, 2007, (The existing union contract includes a 2,75<1/0 incrcase for the union emp loyees.) ') The City's contribution towards employee benefits is based upon thc increase in premiums, Historically the City has increased the contribution by 50~'() of the incrcasc in premium. Council has indicated that (I) wc may need to revicw the formula for calculating the employer contribution; and (2) the City nccds to continuc to cxplore other options and consider a more consumcr-driven health care options, Health insurancc rates will incrcase 70/() and dcntal insurance rates S(% in 2007. In addition, City staff is implementing an optional health care plan that adds deductiblcs and higher out-of-pocket maximums for a lower premium, Staff is recommending that the City's contribution increasc from 5586 to 5615/month, This represents Icss than 50~/o of the increase in premiums for family coverage if an employce stays with thc current plan; however, \VC are providing a less expensive plan (with highcr employee out-of-pocket expenses). Administration's goal is to provide incentive for employees to move to the optional plan, which we believc will have an overall positive impact on future claims, 3, Other employee bcnefit rates have been included and there werc no incrcases/changcs in thosc rates. 3