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