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The Official City Newsletter for Arden Hills Residents January/February 2015 Tax levy to increase less than originally proposed in September by Kristine GoodrichThe City Council decided to use some of the City’s reserves to reduce the proposed property tax increase to 3.1 percent. The 2015 property tax levy was set at $3.36 million. Funding from the regional fiscal disparities pool will contribute $249,000 of that, and City property own- ers will contribute a total of $3.11 million. The 3.1 percent increase the Council decided upon in December is less than the maximum preliminary levy increase of 5 percent that the Council set in September. That means your City property tax bill will be a bit less than what was listed on your notice of proposed taxes. After a lengthy discussion at its Decem- ber 8 meeting, the Council reduced the levy increase by trimming spending and deciding to dip more into reserves. It was a 3-2 decision. There was some concern about the use of additional reserves, which typically help fund road improvement projects. Assuming revenues and expenses in 2015 are equal to what was budgeted, the City will use a little more than $58,000 of its reserves. General Fund Higher contract fees for public safety ser- vices are the most sizable increases in City spending. The Sheriff’s Office contract for law enforcement protection and animal control increased nearly 5 percent. The required contribution to the Lake Johanna Fire Department increased 6.5 percent, in part to fund 24-7 station staffing. The fee for 911 dispatching jumped nearly 15 per- cent, as the County is upgrading to a new dispatching system. Combined, the public safety services will cost an extra $86,000 in 2015, which accounts for a 2.6 percent increase in the levy. City tax levy increase history 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 0 1 2 3 4 5 6 P e r c e n t i n c r e a s e The other notable General Fund spending increases are an addi- tional $40,000 for road maintenance and a 1.5 percent cost-of-living wage increase for City employees. A 2 per- cent wage increase was proposed, but reducing it to 1.5 percent was one of the Council’s budget- trimming measures. Staffing levels are rela- tively unchanged, except for an intern to work 10 hours a week in the finance and administra- tive service departments. The intern had been cut from the 2014 budget. City staff proposed to restore it to a half- time position, but the Council opted to Fund only a .25 FTE (full-time equivalent) intern position. Overall, the General Fund budget in- creased by $42,000, less than a 1 percent increase. Other Funds In addition to the tax levy, utility fees are increasing slightly. The water and sewer rates are increasing 2 percent, and the surface water management fee is increas- ing 3 percent. The 2015 Capital Improvement Plan, approved by the Council on December 15, includes $6.24 million in projects and equipment funded via a variety of sources, including property owner assessments for road projects. Most of the spending is for roads, including the annual summer road improvements ($2.65 million), improve- ments to County Road E ($1.65 million), and contributions to state bridge projects ($600,000). Other funding will be used to replace Public Works vehicles, construct the first section of trail along Lake Valen- tine Road, purchase a new voting system mandated by the State, maintain sewer and storm sewer lines, and more. The overall budget, including the General Fund, Utilities Fund, Capital Fund and a few others, was set at $17.81 million. That’s more than $2.7 million less than 2014, primarily because there were more capital projects last year. Because the Council finalized the increase at less than the prelimi- nary levy set in September, home- owners will find that their prop- erty taxes will be a bit lower than what was listed on their notice of proposed tax from Ramsey County.