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ARDEN HILLS CITY COUNCIL - SEPTEMBER 13,1999 2 . 2000 General Fund expenditures will require an increase higher than that calculated by the County net levy certification. Schedule three of the worksheet indicated a levy certification tax rate of 18.33%. Upon calculating the proposed budgetary needs from the tax levy, staff had concluded that the City of Arden Hills would require a higher local capacity tax rate of 18.98%. Mr. Post advised that staff recommends the City Council approve Resolution #99-28, Authorizing a tax rate increase for the 1999 Tax Levy, payable in 2000. If the recommended increase was not approved, Ramsey County will hold to the 18.33% rate and not allow the City to use the maximum levy that the State of Minnesota has authorized. Mayor Probst stated that he had struggled to understand the fact that there was no connection between this tax rate increase and the freeze on levies imposed by the State of Minnesota. Additionally, this does not reflect whether or not the residents will experience a raise in taxes. He indicated that he would support the proposed resolution. However, he was frustrated that this sort of issue was continually added to the program and has nothing to do with the Truth in Taxation process and does not convey information to the residents regarding what will be happening with their taxes. Counci1member Larson stated that he found it ironic that the State Legislature seeks to impose limits on the cities and counties to live within certain means while the State does not have the same requirements. He asked staff if the levy rate difference would be transferred to dollars and, if so, how much money the increase resulted in. Mr. Post stated that the ditlerence in the levy . rate would result in an increase of$61,772. Councilmember Aplikowski asked why Ramsey County would not allow the tax levy increase. Mr. Post stated that it was not a question of Ramsey County not allowing the increase. Rather, it was simply a calculation that was mandated to be done by the County Auditor. Mayor Probst noted that the levy would only be increased this year by $51,763, which was less than the amount that the calculations indicated that the levy was over. MOTION: Councilmember Larson moved and Councilmember Aplikowski seconded a motion to approve Resolution #99-28, Authorizing a tax rate increase for the 1999 Tax Levy, payable in 2000. The motion carried unanimously (4-0). B. Resolution #99-29, Clarifying Proposed Sums of Money to be Levied for Levy Year 1999, Payable in 2000 . Mr. Post explained that this item involved certifying a preliminary levy to Ramsey County. As discussed with the City Council at the August 9,1999 Budget Review Session, the preliminary 2000 General Fund budget needs to utilize 100 percent of its available tax levy certification amount from the Minnesota Department of Revenue to achieve a balanced budget condition. Resolution #99-29 certifies on a proposed basis that the certified levy amount would be $1,976,377.