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ARDEN HILLS SPECIAL CITY COUNCIL WORK SESSION – SEPTEMBER 26, 2016 2 Interim City Administrator and Director of Finance and Administrative Services Iverson reported this was the case, but would not correct ongoing operating shortages. Councilmember Holden asked if the City would have any additional savings in 2016. Interim City Administrator and Director of Finance and Administrative Services Iverson anticipated the City would have additional savings due to reduced salaries. Councilmember Holden understood these overages could be placed in the PIR fund. Interim City Administrator and Director of Finance and Administrative Services Iverson stated this has been the practice of the Council. She cautioned the Council about depending on the PIR fund to balance the budget. Further discussion ensued regarding the PIR Fund and budget transfers. Councilmember Wicklund understood the City had $565,000 in reserves that could be transferred to balance the budget. He believed the budget was very conservative and asked how staff felt about covering more of their own health care expenses. Interim City Administrator and Director of Finance and Administrative Services Iverson discussed the comments she has received from staff regarding health care expenses and noted there were some bitter feelings about the past changes over the last two years. Councilmember Wicklund asked how much the budget would be impacted by returning to the 50/50 split in the increase over the previous years’ premium for the healthcare expenses. Interim City Administrator and Director of Finance and Administrative Services Iverson stated this would not be a significant increase. Councilmember Wicklund did not support the 60/40 split and believed this action would only deteriorate morale. He wanted to see the City take care of its employees. He commented he did not want to dip into reserves and stated he would therefore gravitate towards a 7.6% tax levy. Councilmember Holmes agreed. Mayor Grant did not support this high of an increase. He commented on the proposed budget increases noting he wanted the City to be cautious that costs were not being raised too high. He stated he could support a 4.7% tax levy increase and felt this was a balanced approach to the budget. Councilmember Holden asked how long Interim City Administrator and Director of Finance and Administrative Services Iverson had been with the City. Interim City Administrator and Director of Finance and Administrative Services Iverson reported she has been with the City for 10 years.