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ARDEN HILLS REGULAR CITY COUNCIL—DECEMBER 12, 2016 8 Interim City Administrator and Director of Finance and Administrator Services Iverson reported that staff would adjust the budget to include the E2 trail segment which would increase expenditures $100,000. MOTION: Councilmember Holden moved and Councilmember Holmes seconded a motion to_adopt Resolution #2016-038 — Adopting the 2017 Final Budget in the Amount of$18,777,880. The motion carried (5-0). Mayor Grant stated there has been a great deal of discussion by the Council regarding the levy amount. He explained the current levy increase was proposed to be 4.7%. MOTION: Councilmember McClung moved and Mayor Grant seconded a motion to adopt Resolution #2016-039 — Setting the 2017 Final Levy for Taxes Payable in 2017 in the Amount of$3,641,290. Councilmember McClung stated he would not be supporting a 4.7% levy increase. He explained he could support a 3.5% levy and believed adjustments could be made to reduce the proposed levy increase. Councilmember Holmes supported the tax levy and understood residents wanted to see the Council investing in the City's parks and trails. Mayor Grant indicated he did not support the proposed levy. He had hoped the percentage would be reduced to 3.5%through a portion of the 2016 budget surplus. He understood that trails and parks were important to Arden Hills' residents and were included within the CIP. He believed it would be very simple to use a portion of the surplus to buy down the levy. Councilmember Wicklund asked if historically the Council has worked to reduce the levy percentage. Mayor Grant commented this has been done in the past. Councilmember Holden stated she would be supporting the 4.7% levy. She explained the three trail segments proposed to be completed in 2017 would cost the City $525,000. She did not believe there was much of a difference between a 3.5% and 4.7% tax levy. For this reason, she recommended the levy amount remain as is. Councilmember Wicklund indicated he was comfortable with the 4.7%tax levy increase. The motion carried 3-2 (Mayor Grant and McClung opposed). D. Approve Memorandum of Understanding with Alatus Arden Hills LLC Regarding Park Land Dedication and Improvements to TCAAP/Rice Creek Commons Stacie Kvilvang, Ehlers & Associates, stated at the November 28th City Council Worksession, staff provided a set of reconciled park improvement costs estimates for the Creek, Hill, and Town