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City Council Regular Meeting Minutes <br />August 27, 2024 <br />Page 3 <br />1 The General Fund Levy supports Administration, Police, Fire, Public Works, Finance and Parks. <br />2 In 2024 the average homeowner paid $1,693 for City services for a home valued at $411,250 or <br />3 $141/month. A graph showing 2025 General Fund Revenues was provided. <br />4 <br />5 Ms. Maloney noted since 1999 to date the City has been awarded $35,070,091 in Grants, <br />6 Donations from local businesses/residents. This amounts to $3,788 per resident (based on <br />7 population of 9,257). <br />8 <br />9 Graphs showing 2025 General Fund Expenditures were provided. <br />10 <br />11 The 2025 Budget Cost Drivers are: <br />12 <br />13 Personnel Costs – 71% of expenditures, overall budgeted costs increased by $504,897 or 8.55%. <br />14 The 2025 base wage increase is based on the anticipation of city’s unions accepting a 3% <br />15 COLA along with appropriate market adjustments. The net cost impact on reoccurring <br />16 wage base is $271,131. Other factors creating the additional $233,766 of costs are as <br />17 follows: <br />o18 The police department budget includes the full year impact of restoring the <br />19 lieutenant position and adding a VCET officer in 2024. These additions occurred <br />20 mid-year. The budget impact is an increase of $152,860 in 2025. <br />o21 The assistant fire chief position was added midyear in 2024, the impact of the full <br />22 year of the position in 2025 will be an increase of $68,828. <br />o23 Hiring for retirements and vacancies will result in four new officers to be trained <br />24 in 2025. The training costs have been budgeted separately from regular wages as <br />25 year to year changes will vary based on need. The cost of training four new <br />26 officers in 2025 is expected to be $114,298. This is a $13,149 increase over the <br />27 2024 training amount budgeted. <br />o28 Health insurance premium increase of 9.1% is shared 50/50 by the city and the <br />29 employees. The 2025 impact of the shared increase is $72,925 (includes elected <br />30 coverage changes from 2023 to 2024). <br />31 <br />32 Contracted Services – 10% of expenditures, overall increase of $60,018 offset by a decrease of <br />33 $82,000 resulting from Hennepin County Board of Commissioner’s decision to stop charging <br />34 cities for this service; this will be levied through the county’s levy going forward. <br />35 Construction permits inspections budgeted at an increasing baseline activity has results in <br />36 greater expense of $5,394. This increase has no impact on the levy as the inspection fee is <br />37 a percentage of permit revenue received. <br />38 Assessor, attorney, auditor, engineer and planner services reflect rate and activity <br />39 increases. The net result of these factors is a cost decrease of ($27,375). <br />40 Contracted information technology costs up $22,383. <br />41 Miscellaneous service contracts are estimated to increase by $18,940. This is driven by <br />42 police and fire increases in contracted costs, and remaining costs impacted by inflation. <br />43 <br />44 Other Insurance Costs – 5% of expenditures, overall costs up by $17,575. <br />45 The worker’s compensation insurance experience rating improved by 11% in the 2024- <br />46 2025 renewal period, combined with overall rate reductions of 15% resulted in a savings <br />47 <br />7