CCP 12-11-2006 - Laserfiche WebLink

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, ARDEN HILLS CITY COUNCIL - November 20, 2006 . Mr. Ruff noted that the financial management plan was based upon the financial information provided by the City for the fiscal years 2005, 2006, and 2007. Also, the projected model does not take into consideration the effect TCAAP or incrcased building pennit revenue may have on the City's tax base if the land purchase is completed. Councilmember Holden asked where the revenue from the fraud case will be allocated. City Adminsitrator Wolfe said that it is at the Council's discretion where the money is allocated. The City Auditor booked the claim payment as 2005 revenuc. Mayor Aplikowski noted that the City's goal and purchasing attitude will also impact the City's financial philosophy in the future. Mayor Aplikowski thanked Ehlers & Associates for providing the City Council with an update on the 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 0[$2,675,161, which represents a 6% increase from the 2006 levy. At the December II th City Council meeting, Council will be asked to approve a final 2007 tax levy as well as a 2007 Budget. The tax levy cmmot be increased from the preliminary levy amount; it can be decreased. . Based upon previous discussion with the City Council, the 2007 budget was prepared with the following assumptions: 1. Salaries are based on the existing compensation plan and a 2.75% anJlual adjustment on January 1,2007. (The existing union contract includes a 2.75% increase for the union employees. ) 2. The City's contribution towards employee benefits is based upon the increase in premiums. Historically the City has increased the contribution by 50% ofthe increase in premium. Council has indicated that (1) we may need to review the formula for calculating the employer contribution; and (2) the City needs to continue to explore other options and consider a more consumer-driven health care options. Health insurance rates will increase 7% and dental insurance rates 8% in 2007. In addition, City staff is implementing an optional health care plan that adds deductibles and higher out-of-pocket maximums for a lower premium. Staff is recommending that the City's contribution increase from $586 to $615/month. This represents less than 50% of the increase in premiums for family coverage if an employee stays with the current plan; however, we arc providing a less expensive plan (with higher employee out-or-pocket expenses). Administration's goal is to provide incentive for employees to move to the optional plan, which we believe will have an overall positive impact on future claims. ..., Other employee benefit rates have been included and there were no increases/changes in -,. those rates. . .3