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ARDEN HILLS REGULAR CITY COUNCIL—NOVEMBER 28, 2016 8 7. PUBLIC HEARINGS None. 8. NEW BUSINESS None. 9. UNFINISHED BUSINESS A. Approve Fund Balance Transfer from General Fund to PIR Fund and a Budget Amendment Interim City Administrator/Director of Finance and Administrative Services Iverson stated in 2014, the Council adopted a revised Fund Balance Policy which directs the Finance Director to transfer any excess funds over 50% of fund balance in the General Fund to the PIR Fund once the final audit is completed with Council approval. Interim City Administrator/Director of Finance and Administrative Services Iverson explained the final audit for 2015 was complete and the fund balance for year-end 2015 is 62.9% over the 2016 budgeted expenditures. The amount of the transfer according to the policy is $565,121. As the Council requested, this is being brought forward to the Council for approval and a budget amendment to the 2016 budget. MOTION: Councilmember Holden moved and Councilmember Holmes seconded a motion to approve a transfer from the General Fund to the PIR Fund of $565,121. Mayor Grant requested an amendment to the motion, reducing the amount being transferred by $40,000 with the intent of using these funds to reduce the levy. AMENDMENT: Mayor Grant moved and Councilmember McClung seconded a motion to reduce the transfer from the General Fund to the PIR Fund by $40,000 with the intent of using these funds to reduce the 2017 levy. Mayor Grant believed $525,000 would still be an adequate amount of funds to assist in completing trails and other infrastructure improvements. He wanted to see the surplus used to provide some break to taxpayers given the level of the surplus. He believed that $40,000 would not go very far when it came to trail connections, but would assist in buying down the levy amount. Councilmember Wicklund commented the Council was not making a levy decision this evening. Mayor Grant reported this was the case. The levy would be approved on December 121h. He commented the approval of the PIR transfer could be tabled until that meeting.