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ARDEN HILLS CITY COUNCIL - SEPTEMBER II, 2000 4 Councilmember Grant stated that he had been hoping to keep the Icvy increase down to near 3%. . However, this was prior to considcration of the items discussed by Mr. Post. Councilmember Aplikowski asked how the recent proposal by Governor Ventura will impact the City budget. Mr. Post stated that one ofthc impacts of Governor Ventura's proposal was that if the City is in a TIF district and deriving TIF revenue, approximately one-half of the TIF revenues are generated from the School District's tax rate, If the School tax rates are cut in halt: this will leave many cities and TIF districts throughout the State in need of support for their bond debt scrvi cc, Mayor Probst presumed that while Governor Ventura's proposal is being worked out this issue will be paid attention to, With regard to the proposed year,end surplus, Councilmember Rem asked ifthc City has ever ended a year in a deficit situation in the last 10 years. Mr. Post responded affirmatively, . Councilmemher Rem asked how often this occurs. Mr. Post stated that the surpluses that the City generates are typically related to the performance in the Building Permit revenues, which are somewhat unpredictable, Councilmember Larson noted that the City Council had previously approved approximately $40,000 for work to connect the new water line on the street behind Mounds View High School. He requested confirmation that this money will come from a fund other than the General Fund. Mr. Post stated that the cost for this project will be paid from the Water Utility Fund, Theretore, it will not impact the tax levy, Councilmember Grant requested confirmation that the levy increase amount set by the City could later be reduced but not increased, Mr. Post stated that the importance of setting the preliminary levy and Truth in Taxation public hearing dates this evening was that this was the basic input that goes into the Truth in Taxation process, Therefore, whatever levy is approved by the City Council this evening will be ref1ected in the statement sent to the residents of Arden Hills with respect to changes for 2001 . Mayor Probst stated that he had met with City Staff prior to this meeting and discussed the fact that there were a number of issues for future planning considerations related to the Arsenal property and the I-35W Corridor Coalition, He indicated that an option may be for the City to pursue outside funding sources to help deal with some of these extra costs, Mayor Probst indicated that one issue with the tax levy was that everyone percent of increase only nets the City approximately $20,000. Therefore, in order for the City to fund the new Community Development Director position in 2001, there would have to be a 2.5% increase for just this one item and he was not certain that the City Council was prepared to do this. . COlmcilmember Larson stated that ifthere was a possibility of extending the lifc of the County Road E light poles for an additional two years, and ifit may be possible to fund the Community Dcvelopment Director position through a grant or other outside source of revenue, then the