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ARDEN HILLS CITY COUNCIL – DECEMBER 14, 2020 7 <br /> <br />Councilmember McClung stated it was safe to say that no decision has been made regarding <br />there being a trail or no trail along Snelling Avenue. <br /> <br />MOTION: Councilmember McClung moved and Councilmember Holden seconded a <br />motion to adopt Resolution #2020-067 – Setting the Final Tax Levy for Taxes <br />Payable in 2021. <br /> <br />Councilmember Holden asked if the City would have a budget shortfall or surplus in 2020. <br /> <br />Finance Director Bauman reported the 2020 budget would not have a deficit. She discussed <br />how the CARES Act funding assisted the 2020 budget in having a surplus. She estimated the City <br />would have a budget surplus between $100,000 and $200,000 without the CARES Act funds. <br /> <br />Councilmember McClung commented given what he just heard the City would have some level <br />of surplus from 2020. He indicated he was having a hard time getting behind the 4.25% tax levy. <br />He recommended the tax levy be reduced to 3.5% which would be a reduction of $31,010. He <br />stated 2020 has been a hard year and he would like to see the City minimize its budget as much as <br />possible. <br /> <br />AMENDMENT: Councilmember McClung moved and Councilmember Scott seconded <br />a motion to decrease the Tax Levy for Taxes Payable in 2021 to 3.5%. <br /> <br />Councilmember Holmes asked if the City has seen a rise in delinquent utility bills or property <br />taxes. <br /> <br />Finance Director Bauman explained staff has not seen an increase in delinquencies in 2020 due <br />to COVID. She reported the delinquencies were right in line with previous years. <br /> <br />Councilmember Holmes stated she did not support the levy going down. She would like it to <br />remain at 4.25%. <br /> <br />Mayor Grant reported based on the information received from the County, 83% of Arden Hills <br />residents would receive a decrease in property taxes based on the proposed levy. <br /> <br />Councilmember Holden reported the value of her home went up $30,000 for next year and this <br />would impact her property taxes. <br /> <br />Councilmember Scott stated most years he would agree with Councilmember Holmes, however <br />given how many people were hurting in 2020, he supported the tax levy being dropped to 3.5%. <br /> <br />Mayor Grant questioned how a levy reduction to 3.5% would impact the median value home. <br /> <br />Finance Director Bauman explained the median value home would have a reduction in property <br />taxes of $8 next year if the levy were reduced to 3.5%. <br />