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ARDEN HILLS CITY COUNCIL—SEPTEMBER 26, 2022 8 Councilmember Holden stated she has been told the City was not truthful in its presentation of the tax levy. She asked if the information presented was truthful. Finance Director Bauman explained the information presented was truthful. Mayor Grant reported the City has been awarded the MNGFOA audit award for many years, which was presented to cities based on their transparency in finances. Councilmember Radziej thanked staff for all of their work on the preliminary tax levy and budget for 2023. Councilmember Scott requested further information regarding how rental properties would be changing in 2023. Finance Director Bauman discussed how the value of rental properties would be decreasing by 27% in 2023. She noted single family residential property values would be going up 15%. Councilmember Radziej stated he was a little uncomfortable with underfunding the budget. He questioned why the City chose to underfund the budget each year. City Administrator Perrault explained this was a policy decision by the City Council that stems from the conservative manner in which the City budgets. Further discussion ensued regarding the City's previous budgets versus actual activity for the past ten years. Mayor Grant commented on the percentage increase in the levy that was due to police and fire increases,which was $117,590. Councilmember Holden indicated the Fire Board was still working to finalize their budget for 2023. Mayor Grant questioned how the Council wanted to proceed with the preliminary levy. Councilmember Holden stated she supported moving forward with the 6% levy increase. However, after considering this further, she would recommend the Council move forward with a 6.5%or 7%increase in order to offer more COLA to City employees. Councilmember Holmes explained she supported the 7% increase as well in order to provide a proper COLA increase for City employees. She reported the 7%was preliminary and this number could always go down between September and December. Councilmember Scott indicated the economy was softening at this time and because of this he would support the 7%increase for the preliminary levy. Councilmember Radziej agreed the 7% increase was the proper way to move the City forward for 2023.