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ARDEN HILLS CITY COUNCIL WORK SESSION—APRIL 21, 2014 7 for the residents. He does not support a staffing increase or a benefit increase for employees. He is in favor of the Council further discussing the structural funding issues at a future work session. Councilmember Holmes had concerns with contributions made into employees' HSA accounts. She indicated that she would need more time to think about a levy increase. Councilmember Werner stated that for preliminary discussion purposes, he would be open to discussing a 5%tax levy. Mayor Grant reported that inflation in 2013 was 1.5%. For this reason, he could support a 2% levy increase. He agreed that health care cost increases be borne by the employees. Based on the conversation with the public regarding franchise fees, he wanted to see the City hold the line on taxes. Councilmember Holden stated that there are gaps in the budget and Snelling Avenue was not slated to be replaced until 2028. She stated that she believes if the City continues to use reserves for projects, the City might not have enough money to complete this project. She anticipated that the City will end up right around 3% in 2015 given the increases needed each year to cover increases in public safety. Councilmember Holmes commented that the City has MSA funds that may become available for Old Snelling. She requested that staff provide the Council with information on these funds. Mayor Grant recommended that the Snelling issue be left out of the 2015 budget cycle. He suggested that staff try and come in at a 3%levy increase. Councilmember Holden wanted to know how much money is available for roads. Director of Finance and Administrative Services Iverson stated that the CIP would be reviewed in June, which would give the City an idea of what road construction projects are planned and how they would be funded for 2015. She explained that she would proceed with a 3% levy increase. Mayor Grant approved of staff proceeding in this direction, with the caveat that it could be cut back to 2% or I%, with the understanding that roads and the PIR could increase this number. C. Single Stream Recycling City Planner Streff explained that the City of Arden Hills has contracted for curbside recycling service since 1992, for single family, duplex, triplex and fourplex residential dwelling units. Currently the City utilizes a dual stream collection process that requires residents to separate recyclables into two groups of materials: 1) all food and beverage containers; and 2) all paper and fiber products. Eureka Recycling has submitted a request to change the collection method from dual stream to single stream collection. The change to single stream would also include the expansion of recyclable plastic food packaging containers (#4 and#5)to be collected including;