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City Council Regular Meeting Minutes August 24, 2021 Page 3 Employee/Employer. Includes an allowance for an additional fulltime firefighter starting mid- 2022. City staff is seeking a grant which would fund 50% of this position. 4 Contracted services: 11.0% of expenditures, overall costs up $38,217. Construction inspections 5 costs mirror the increasing permit activity producing an increase in expenses of $24,261. This 6 increase has no impact on the levy as the inspection fee is a percentage of permit revenue 7 received. Assessor, Attorney, Auditor, Engineer, Inspector and Planner services reflect rate and 8 activity increases. These factors result in a cost impact of $13,894. 10 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 Insurance costs: 4.4% of expenditures, overall higher by $3,321. Both Worker's Compensation and Property and Liability policies had increases in premium rates that were mitigated by improved experience ratings. Pass through costs: 2.2% of expenditures, costs up $1,325. City of New Brighton gasoline purchasing ending in January 2021, which eliminated the most volatile budget item in this group costs. Remaining budget line items combined total $953,210 or 11.9% of expenditures, costs up $69,481. The overall increase includes $20,000 for a community survey. 2022 budgeted expenses anticipate returning to pre-COVID activity levels which increases spending on communications, supplies, repairs and maintenance, training, utilities and fuels. Inflationary factors of 3% - 6% have been applied to many of the estimated costs as well. Police contracted services has increased by $29,065. Excess Tax Increment collections are projected to decrease by $32,475 in 2022. General Fund investment earnings are expected to decline by $9,500 in 2022. School District opted to eliminate the DARE program in January 2021, revenue loss of $14,500. Statewide appeal to extend PERA Aid failed, lost revenue of $7,197. Ms. Rueckert showed a chart of the 2022 Proposed Levies. She explained the increases from 2021 to 2022. 2021A General Obligation Bonds - $2,085,000 were issued for the construction portion of Street Reconstruction and Utilities replacement and Mill and Overlays. In 2021, the median value home's property taxes were $67.07 monthly for road, utility, parks and facility improvements. The overall levy increase without Debt Levy Relief is 11.91 % and with Debt Levy Relief is 4.80%. Ms. Rueckert summarized the 2022 budget: • General Fund operating budget totals $7,994,029, supported by a property tax levy of $5,080,297. • Personnel costs represent 70.5% of General Fund expenditures: Costs up $229,900 or 4.24%. • Insurance expenditures up $3,321. • Contracted services up $38,217. • Park Improvement levy introduced $5,000. • Other Capital Funds levies increased by $35,000 • Increase in all levies totals $377,497 or 4.80%.