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ARDEN HILLS CITY COUNCIL—SEPTEMBER 28, 2015 8 <br /> City Administrator Klaers explained that the Council last discussed the budget at a work session <br /> on August 17''. He discussed how the City's tax base would increase this year due to the Round <br /> Lake taxing district coming back onto the tax rolls. As discussed by the Council in August, a 3% <br /> increase in the tax levy was being proposed by staff. The balance of the PIR fund balance was <br /> noted and staff provided comment on the larger expenditures planned for 2016. <br /> Mayor Grant believed there was general agreement among the Council in August to direct staff <br /> to look at the budget and bring back a 3% levy. However, staff has brought to the Council a <br /> document with a 6.5% levy. <br /> Director of Finance and Administrative Services Iverson reported that staff did prepare a 3% <br /> levy as a starting point which includes the use of$280,000 in reserves. <br /> Councilmember Holmes asked if the City staffing situation with retirements would provide <br /> savings or would recruiting costs offset this. <br /> Director of Finance and Administrative Services Iverson believed that the savings would be <br /> minimal in 2015. However, the City might achieve some savings in 2016 depending upon the rate <br /> at which the new employees are hired. <br /> Councilmember Holmes did not understand why the City had a deficit of$200,000 within the <br /> budget. <br /> Director of Finance and Administrative Services Iverson reviewed the budget document with <br /> the Council in further detail noting expenditures outweighed revenues by $200,000 at this time. It <br /> was noted that the expenditures for 2016, included a$100,000 contribution to the PIR fund. <br /> Mayor Grant reminded the Council that single line items could be addressed in the future and <br /> that the Council was only being asked to approve the preliminary levy this evening. <br /> Councilmember Holden explained that she was unable to attend the August work session where <br /> the budget was discussed. She believed that a 3%tax levy was low. She supported increasing the <br /> tax levy until the budget can be reviewed further. She noted that when the budget is discussed in <br /> December there should be a better understanding regarding the impact new staff will have on the <br /> City. <br /> Councilmember McClung supported the tax levy remaining at 3%. <br /> Councilmember Holmes indicated that she supported the 6.5% suggestion in staff's memo. She <br /> believed that the proposed budget was well-reasoned. She indicated that the City will have <br /> increased costs for TCAAP and new staffing that would differ from 2015. She understood that <br /> Arden Hills' residents took advantage and enjoyed the City's parks and for this reason, she did not <br /> want to see cuts made in this area. <br /> Mayor Grant inquired if staff had looked into PIR spending reductions. <br />