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