12-10-19-R - Laserfiche WebLink

Home Browse Search

ARDEN HILLS CITY COUNCIL—DECEMBER 10, 2018 7 MOTION: Councilmember Holmes moved and Councilmember McClung seconded a motion to adopt Resolution 2018-066 Setting the Final Tax Levy for Taxes Payable in 2019 in the amount of$3,938.420. Councilmember Holden indicated the proposed budget had a deficit predicted for 2019 and requested comment on this from staff. Finance Director Bauman explained initial projections show the City just over $200,000 in the black for 2018 and these funds would be carried over to 2019. Councilmember Holden questioned what the difference would be between a 3.5% and 4% tax levy increase. Mayor Grant commented this would only be a $20,000 difference. Councilmember Holden stated she understood the majority of the increases in the levy were due public safety increases. She questioned how the Council would manage a surplus in the coming year. Councilmember Holmes supported the Council placing all surpluses into the City's Capital Funds. Mayor Grant discussed the City's fund balance and financial policy for surpluses. Finance Director Bauman commented further on the City's fund balance policy noting this policy was in place because the City only received property taxes twice a year. Mayor Grant requested that all future surplus transfers be completed shortly after the audit and not at year end. Councilmember Holmes stated she would have supported a tax levy at 5%given the fact the City was operating at a deficit. She understood this would be made up through a surplus but did not believe this was the best practice. She explained she supported the City having a balanced budget. She reported the City had achieved a AAA bond rating which was related to the City's fund balance. For this reason, she encouraged the City to not have an operating deficit and should consider a 5%tax levy. Councilmember McClung commented over the past three years, the City has used it surplus to balance the budget. He commended the City for getting fairly close each year and for not overtaxing its residents. The motion carried 4-1 (Councilmember Holmes opposed). MOTION: Councilmember Holden moved and Councilmember Holmes seconded a motion to adopt Resolution 2018-067 Adopting the proposed 2019 Budget in the amount of$13,972,990.