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ARDEN HILLS CITY COUNCIL—SEPTEMBER 10, 2012 3 B. Motion to Approve Resolution 2012-03,0 Designating Brokerage Firms for Investments C. Motion to Approve Walgreens Tobacco License MOTION: Councilmember Tamble moved and Councilmember Holden seconded a motion to approve the Consent Calendar as presented and to authorize execution of all necessary documents contained therein. The motion carried unanimously (5-0). 6. PULLED CONSENT ITEMS None. 7. PUBLIC HEARINGS None. 8. NEW BUSINESS A. Set Operating Levy Payable 2013 Director of Finance and Administrative Services Iverson reviewed her staff report with the City Council. She stated that the median residential property value in Arden Hills decreased by 5.6%. Some homes increased and some decreased, but overall, the median value went from $272,800 to $257,400. She noted that property values have declined for the past five assessment years, and this last year has been the largest in terms of residential loss. She stated that despite this most recent decrease, there are encouraging signs: the market is stabilizing, there is a flattening in the decline of residential values, apartment values are rising, and foreclosures are at the lowest percentage in many years. Director of Finance and Administrative Services Iverson explained that to evaluate the true impact of a tax levy change to the residential property owner, the decrease in fiscal disparities and the change in the taxable value need to be taken into account. There is an 8.2% decrease in the fiscal disparity portion of the levy and the local taxable value has also decreased by 4.4% because of the market values. This results in a net tax rate increase of 5.4% before any levy adjustments are made. Director of Finance and Administrative Services Iverson stated that staff has prepared a preliminary levy of 4.1% per City Council direction given at previous work sessions. She noted that the major increases to the budget are for public safety costs and other contracted services. For example, the fire contract increased 5.52%, the sheriff and animal control contract increased 3.34%, and the 911 dispatch contract increased 5.79%. In total, the public safety contracts amount to 41.84% of the proposed budget increase. Other contracted services include IT support, auditing, legal, and consultants for other projects, such as B2 Business District and Twin Cities Army Ammunition Plant(TCAAP).