CC PACKET 12102024 - Laserfiche WebLink

Home Browse Search

O The police department budget includes the full year impact of restoring the lieutenant position and adding a VCET officer in 2024. These additions occurred mid-year. The budget impact is an increase of $152,860 in 2025. O Similarly, the assistant fire chief position was added midyear in 2024, the impact of the full year of the position in 2025 will be an increase of $68,828. O Health insurance premiums increased an average of 5% when applied to 2025 employee elections. The increase is shared 50/50 by the city and the employees. The 2025 impact of the shared increase is $58,472. CONTRACTED SERVICES – 9% of expenditures, net decrease of ($44,913), mainly as a result of Hennepin County Board of Commissioner’s decision to no longer charge cities for assessing services; this will be levied through the county’s levy going forward. • Construction permits inspections budgeted at an increasing baseline activity has results in greater expense of $5,394. This increase has no impact on the levy as the inspection fee is a percentage of permit revenue received. • Professional Services - decrease of ($99,466) due to assessing services and attorney reduced budgeted contingency based on recent activity, auditor, engineer and planner services reflect rates and activity in these accounts. • Contracted information technology costs up $25,383 due to vendor increases and additional public safety software. • Miscellaneous service contracts are estimated to increase by $23,777. This is driven by public works increase in contracted costs, and remaining costs impacted by inflation. OTHER INSURANCE COSTS – 4% of expenditures, overall costs decreased by ($92,620). Insurance policies renew midyear. Earlier assumptions were that rates would further increase in 2025, however, recent information from the League of Minnesota Cities Insurance Trust shared unexpected rate decreases for the 2025 portion of our budget year. • Worker’s Compensation insurance • Experience rating improved by 11% in the 2024-2025 renewal period • Overall rate reductions of 15% in 2024 and an average reduction of 20% in 2025 were due to favorable claim development in 2023 & 2024. This resulted in an overall savings of 30% for the 2024/2025 policy renewal, resulting in a savings of ($109,122) in workers’ compensation premiums for the budget year. Liability, property and casualty premiums • 2024 portion - 16.35% increase in municipal liability, 32.56% increase in auto, and 19.5% increase in excess liability premiums, the net increase is 13.64 % • 2025 rates for property and liability will decrease by 8% reducing the increase for the budget year to $16,502. PASS THROUGH COSTS – 3% of expenditures, costs up $56,130. • A substantial portion of the increase represents an estimated $78,000 in fire relief payments made from state fire aid. This is offset by revenue of the same amount and is an accounting requirement with no net levy impact. The transfer for rent from the community center returned to the 2023 amount, a reduction of $15,000. MEMBERSHIP DUES, TRAINING, CONFERENCES – 1.79% of expenditures, costs up $41,600 • Tuition reimbursement and professional development programs to aid in employee retention • Increased training costs due to employee turnover 39