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ARDEN HILLS CITY COUNCIL – SEPTEMBER 13, 2021 4 <br /> <br />Councilmember McClung stated he was comfortable with setting the levy at 3%. <br /> <br />Councilmember Holden requested further information regarding the public safety increases <br />projected for 2022. <br /> <br />Finance Director Bauman reported the expenses were estimated to increase by $75,520 in 2022. <br /> <br />Councilmember Holmes expressed concern with setting the levy increase at 3%. She believed <br />this was too low. She commented on the personnel changes that were occurring at City Hall and <br />noted other changes may occur in 2022. She recommended the levy increase be set at 5% noting <br />this amount can always be reduced by December. <br /> <br />Councilmember Scott concurred with Councilmember Holmes. He feared that the City was <br />underfunding its operations. While this may be okay for a couple of years, he believed it would <br />benefit the City to set the max levy at 5% versus 3%. <br /> <br />Councilmember Holden commented she could support setting the tax levy at 5% at this time, but <br />would want this percentage reduced in December. <br /> <br />Mayor Grant questioned what the underfunded amount was within the budget at 3%. <br /> <br />Finance Director Bauman explained this was currently $242,690. <br /> <br />Mayor Grant commented on the transfers out of the budget that occur on a yearly basis. He <br />reported these transfers were put into the PIR fund. He was of the opinion that the City could <br />keep the levy a little lower given the history of the transfers that have occurred over the past eight <br />years. He supported setting the preliminary levy at 4.5%. He stated he would like to see this <br />number move lower by December, because it can. <br /> <br />Councilmember Holmes discussed the transfers out, noting that residents of Arden Hills were <br />asking for more capital improvements, which were covered by the PIR fund. <br /> <br />Mayor Grant reviewed the 2021 tax rates for cities in Ramsey County. He noted Arden Hills <br />was one of the lowest in the County. He recommended the levy be set at 4% to 4.5%. <br /> <br />Councilmember McClung indicated he could support the tax levy increasing to 4%. <br /> <br />Councilmember Holden agreed the preliminary levy should be set at 4% to 4.5%. She <br />commented further on the levy percentages and PIR transfers that had been approved over the past <br />eight years. She stated she could not support a preliminary tax levy of 5%. <br /> <br />Mayor Grant asked if the Councilmembers supporting a 5% levy increase could support this <br />being reduced to 4.5% at this time. <br /> <br />Councilmember Holmes stated she could support this. <br /> <br />Councilmember Scott commented stated he could support 4.5% as well.