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ARDEN HILLS CITY COUNCIL – SEPTEMBER 14, 2020 6 Public Works Director/City Engineer Blomstrom explained based upon the City’s assessment policy Prior Avenue would be excluded. MOTION: Councilmember Holden moved and Councilmember Holmes seconded a motion to adopt Resolution #2020-037 – Ordering Improvements and Preparation of Plans and Specifications for the 2021 PMP Street and Utility Improvement Project. Councilmember Holden hoped that the City Council would vote to support this Resolution. She indicated these streets were in dire need of improvement. Councilmember McClung agreed. Mayor Grant reported he drove these roadways and explained some are very close to breaking apart. He agreed these streets were in need of improvement. A roll call vote was taken. The motion carried (5-0). B. Set Preliminary Levy and Establish Truth in Taxation Public Hearing Date for Proposed Taxes Payable in 2021 Finance Director Bauman explained State law requires that cities certify their proposed property tax levies to the county auditor by September 30. The proposed tax levy that is given preliminary approval may be lowered but cannot be increased. The City Council needs to decide the maximum levy that it is willing to approve and then adopt a Resolution. The final levy will be set in December 2020. A budget workshop was held with the Council on August 17, 2020. Staff was directed to reduce the proposed COLA for non-union employees from 3% to 2% and to raise the proposed maximum levy increase from 3% to 5%. It was noted there will be another budget workshop in either October or November, prior to the final levy and budget adoption meeting in December. She provided further comment on the anticipated expenditures and revenues for 2021. She described how the proposed levy would impact the median value homeowner. She discussed the amount of funds available for a General Fund Transfer and recommended $341,000 be transferred to cover the cost of the land purchase for the future Lake Johanna Fire Station and that the remaining $137,000 be transferred to the PIR Fund. Staff recommended the Council set the Preliminary Levy and Set the Truth in Taxation Hearing Date. Councilmember Holmes requested further information regarding the City’s tax rate. Finance Director Bauman explained the tax rate was the percentage that was applied to the estimated taxable value of a home. She reviewed the City’s tax rate from 2020, which was 25.414%. She noted with a 3% tax levy the City’s tax rate would be 24.891% in 2021 and with a 5% tax levy the City’s tax rate would be 25.417% in 2021. Councilmember Holmes asked why NYFS was included in the City Council budget. She recommended this expense be a separate line item.