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ARDEN HILLS SPECIAL CITY COUNCIL WORK SESSION – SEPTEMBER 26, 2016 3 <br /> <br />Councilmember Holden supported a PIR Fund transfer to balance the budget. She did not <br />believe the City should be raising taxes when this fund was available to assist with buying the <br />levy down. <br /> <br />Councilmember McClung stated he could not support a 7.6% tax levy. He hoped to have the <br />levy amount closer to 4.7% with the hopes of reducing this amount between September and <br />December. <br /> <br />Councilmember Holmes reported the City would have another $226,000 in surplus for 2016 that <br />should be going into the PIR Fund. <br /> <br />Mayor Grant commented that the City currently had a surplus of $791,000. <br /> <br />Interim City Administrator and Director of Finance and Administrative Services Iverson <br />stated the surplus was only available to the City because of salary savings and unforeseen <br />increased permit fees. <br /> <br />Councilmember McClung did not believe the PIR Fund had to be returned to its original <br />condition. He understood the City had a policy in place regarding the General Fund surplus to <br />fund capital reserves. However, he supported a portion of the surplus being used to buy down a <br />portion of the levy. <br /> <br />Councilmember Holden anticipated that the City had even more than $791,000 in surplus given <br />the fact the City did not complete a lot of road improvements and permit fees were higher than <br />expected again in 2016. She discussed how the City had reduced its street improvement expenses <br />for Thom Drive and Sandeen. She explained she could support a 4.7% tax levy increase at this <br />time, but hoped this could be reduced prior to December. <br /> <br />Interim City Administrator and Director of Finance and Administrative Services Iverson <br />stated it was not a good practice to use reserves to balance the budget. She wanted to make the <br />Council aware of this and noted this practice could also affect the City’s bond rating. <br /> <br />Mayor Grant did not believe this to be a concern for the Council noting this has not been a <br />regular practice. <br /> <br />Councilmember Holmes did not believe the PIR Fund was artificially high. She understood the <br />residents of Arden Hills wanted trails and believed the Council should be planning accordingly. <br /> <br />Mayor Grant supported trail projects being completed. He asked for final comments from the <br />Council. <br /> <br />Councilmember Wicklund was of the opinion the tax levy should be approved at the 4.7% level <br />and believed this amount could be reduced over the coming months. <br /> <br />2. COUNCIL COMMENTS AND STAFF UPDATES <br />