CC MINUTES 09102024 - Laserfiche WebLink

Home Browse Search

City Council Regular Meeting Minutes September 10, 2024 Page 3 1 • Fire 2 • Public Works 3 • Finance 4 • Parks 5 6 In 2024, the average homeowner paid $1,693 for City services for a home valued at $411,250 7 ($141 /month). A chart showing 2025 General Fund Expenditures was displayed. 8 9 Ms. Maloney reviewed the 2025 Budget Cost Drivers as follows: Personnel Costs — 71 % of 10 expenditures, overall budgeted costs increased by $759,652. The 2025 base wage increase is 11 based on the anticipation of City's unions accepting a 3% cola along with appropriate market 12 adjustments. The net cost impact on the reoccurring wage base is $442,961. Other factors 13 creating the additional $233,766 in costs are as follows: 14 • The Police Department budget includes the full -year impact of restoring the lieutenant 15 position and adding a VCET officer in 2024. These additions occurred mid -year. The 16 budget impact is an increase of $152,860 in 2025. 17 • Similarly, the assistant fire chief position was added midyear in 2024, the impact of the 18 full year of the position in 2025 will be an increase of $68,828. 19 • Union negotiations are still ongoing, with high market demands driving up requests and 20 having a more significant impact on the levy than in previous years. 21 • Health insurance premium increase of 9.1 % is shared 5 015 0 by the City and the 22 employees. The 2025 impact of the shared increase is $72,925 (includes elected coverage 23 changes from 2023 to 2024). 24 25 Contracted Services — 10% of expenditures, net decrease of $60,980 mainly as a result of 26 Hennepin County Board of Commissioner's decision to no longer charge cities for assessing 27 services; this will be levied through the County's levy going forward. 28 • Construction permits inspections budgeted at an increasing baseline activity has resulted 29 in greater expense of $5,394. This increase has no impact on the levy as the inspection 30 fee is a percentage of permit revenue received. 31 • Assessor (decrease of $82,000), attorney — reduced budgeted contingency, auditor, 32 engineer and planner services reflect rates and activity in these accounts. The net result of 33 these factors is cost decrease of $107,000. 34 • Contracted information technology costs up $22,383. 35 • Miscellaneous service contracts are estimated to increase by $18,940. This is driven by 36 police and fire increases in contracted costs, and remaining costs impacted by inflation. 37 38 Other Insurance Costs — 5% of expenditures, overall costs up by $17,575. 39 • The worker's compensation insurance experience rating improved by 11% in the 2024- 40 2025 renewal period, combined with overall rate reductions of 15% resulted in a savings 41 of 16.86% for the 2024/2025 policy renewal, resulting in a savings of $58,230 in 42 workers' compensation premiums for the policy year. The budget year is a combination 43 of half prior renewal period rates and half current renewal period rates, resulting in a 44 small overall increase when combined with the prior year increase of 17.2%.