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ARDEN HILLS CITY COUNCIL—DECEMBER 9, 2013 14 Councilmember Holmes was proud that the Council was not proposing to dip into reserves to cover its expenses in 2014. She was in favor of having the Northeast Youth and Family Services expense become a General Fund expense. Councilmember McClung was of the opinion that the Northeast Youth and Family Services expense be a reserve expense as it was not anticipated. He recommended that this item be placed in the budget for 2015. City Administrator Klaers commented that the budget was amended by $31,571 and these expenses were all to the General Fund. He indicated the Council could reduce the levy by this amount and the levy increase would be about 2.0%. MOTION: Councilmember Holden moved and Councilmember Holmes seconded a motion to reduce the levy increase by $31,571 to $66,226 which would be a levy increase of approximately 2.08%. The motion carried (4-1) (McClung opposed). MOTION: Councilmember McClung moved and Councilmember Holden seconded a motion to extend the meeting to allow the Council to discuss Item 9A. The motion carried (5-0). 9. UNFINISHED BUSINESS A. Round Lake Road Area Feasibility Report Public Works Director Maurer stated that at the July 29, 2013, Council meeting, the Council hired Elfering & Associates to prepare a feasibility report for the reconstruction of Round Lake Road. Through research of City files of past actions in this area, staff found feasibility reports from 1997 and 1998 that discussed virtually the same improvements and proposed assessments to the benefitted properties but for various reasons did not advance beyond the study phase. Staff also found a Development Agreement dated March 4, 1998, between the Arden Hills Economic Development Authority and Welch Development Company, LLC. That agreement anticipated the improvement to Round Lake Road and that the properties covered by the agreement would be included in the assessment. Based on this information, staff asked Elfering and Associates to review the condition of Gateway Boulevard and Gateway Court to determine if any street improvements were needed on these streets. Public Works Director Maurer explained that the feasibility report fully discusses the proposed improvements to Round Lake Road and recommends a mill and overlay to both Gateway Boulevard and Gateway Court. Funding for the proposed improvements is recommended through a combination of assessments in accordance to the City's Assessment Policy, Water Utility and Surface Water Management funds and remaining Tax Increment Fund (TIF), Municipal State Aid (MSA) Funds and/or Permanent Improvement Revolving (PIR) Funds. Kristie Elfering from Elfering and Associates was in attendance at Monday's Council meeting to provide a brief presentation of the report.