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City Council Regular Meeting Minutes September 10, 2024 Page 2 2 VII. PUBLIC HEARING. 3 4 A. Resolution 24-059 — Settiniz the 2025 PreliminqU Tax Levy and General O eratin 5 Budget for the City of St. Anthony Village. 6 7 Finance Director Deborah Maloney reviewed Staff presented the draft 2025 budget and levy on 8 August 27, 2024, projecting a 4.65% levy increase. Since that meeting further negotiations have 9 taken place with the City's labor unions and information from comparable cities shows that 10 market adjustments are needed across all functions to remain competitive. Negotiations are still 11 ongoing, and as a result, staff is proposing to set the Preliminary Levy with a 6% increase over 12 2024. This will allow for flexibility to complete labor negotiations and would be the high mark 13 for the 2025 levy. Staff will present options to bring the levy increase at or below 5% for 14 consideration before the Truth in Taxation presentation on December 10, 2024. 15 16 The Levy proposed reflects these work session discussions. The proposed 2025 overall levy is 17 $9,742,239 which represents an increase of $551,106 or a 6.00% increase compared to the 2024 18 overall levy. 19 20 Ms. Maloney continued reviewing the 2025 Budget Parameters: 21 • City revenues budgeted using current run rates for sources that are subject to trends and 22 conservative baseline estimates for reoccurring aids and charges for services. 23 • Expenses budgeted at amounts that will maintain present level of City services. 24 • Liquor transfers are based on liquor operating results. 25 26 The changes since the August 27, 2024 Meeting Presentation were reviewed: 27 • Labor negotiations have made it clear that market adjustments are needed across all 28 functions to remain competitive in attracting and retaining staff. 29 o This is based on current wages and known wage increases for comparable cities to 30 St. Anthony Village. 31 • This has resulted in a needed levy increase of over 5% based on the draft 2025 Budget 32 and Levy. 33 o Staff is recommending setting a preliminary levy increase of 5% to accommodate the 34 market wage pressure. This sets a high mark, with final adoption to take place in 35 December. 36 • Staff will present options to lower the levy increase during the Capital Funds discussion, 37 which is the next step in the budget process. 38 39 Initial Levy increase information from 13 area cities indicates the current environment. The 40 average preliminary levy increase for the list of cities is a 10.48% increase from 2024 final levy. 41 42 Ms. Maloney presented charts showing the Path to the 2025 Tax Levy, General Fund and Levy, 43 Overall Levy by Fund Type, and 2025 General Fund Revenues. 44 The General Fund Levy supports: 45 • Administration 46 • Police