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ARDEN HILLS CITY COUNCIL— SEPTEMBER 25, 2023 8 <br /> City Administrator Perrault noted the previous Finance Director estimated this to be <br /> somewhere between $100,000 and $200,000. <br /> Councilmember Holden commented on the budget to actual for 2023 and noted the City has had <br /> a budget surplus every year since 2013. She did not believe the City should be pursuing a 14.7% <br /> tax levy but rather should reduce this amount taking into consideration the budget surplus from <br /> 2023. She stated she would like to see the tax levy somewhere around 10%. <br /> Councilmember Fabel indicated the proposed tax levy was to provide adequate revenues to <br /> finance the 2024 budget. He stated in order to fully fund the budget staff recommends a levy of <br /> 12.55%. He questioned what portions of the budget does staff not fully fund. <br /> City Administrator Perrault reported staff was recommending the levy be at least 12.55% and <br /> that the budget be fully funded. He explained he was not anticipating permits would be as high in <br /> 2024 as 2023. He noted to Councilmember Holden's point, the City would have budget excess <br /> that would assist with balancing the budget. <br /> Councilmember Fabel stated he believed it was common sense to set the preliminary levy at an <br /> amount that meets the preliminary budget. <br /> Mayor Grant explained he went through over the past 10 years of budgets and noted the City was <br /> $750,000 under budget during this time period. He indicated the City never spends all of the <br /> budget. He reiterated that all of the expenditures within the budget were estimates, along with the <br /> fact all revenues were estimates. He commented further on how he believed a 10% levy increase <br /> would be sufficient for 2024. <br /> Councilmember Monson asked what the outstanding items were within the budget. <br /> City Administrator Perrault stated this included union negotiations, final insurance rates, final <br /> rates from the LMC, and City Hall staff wage/benefits. <br /> Councilmember Monson questioned if the $200,000 surplus for 2023 was due to the loss of the <br /> Finance Director. <br /> City Administrator Perrault reported this estimate was done prior to Finance Director Bauman <br /> leaving. He indicated this number could be higher than earlier estimated. <br /> Councilmember Monson indicated she rewatched the City Council budget meetings from last <br /> year. She commented on how the tax levy was not just for 2024, but rather had impacts on the <br /> health of funds in future years. She believed it would be prudent to set a higher levy for the <br /> preliminary levy. She stated she did not want the Council to kick the can down the road and that <br /> asking for franchise fees wasn't fair or very clear to the public. She supported the preliminary <br /> levy being set at 14.7% just for the clean line that the budget has been balanced, with the <br /> understanding this number could come down by December. <br /> Councilmember Rousseau questioned if the City was considering how the budget surplus would <br /> be used in 2024. <br />