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. Arden Hills Council 2 December 10, 1993 balance. Mr. Post reported that Arden Hills' tax rate is lower in comparison to neighboring cities of Mounds View, Shoreview and New Brighton. The Arden Hills proposed tax capacity rate of 17.078% is very close to the average rate in comparison to neighboring communities. The City's 1993 rate was 14.382%. Mr. Post commented that the November, 1993 final report on local services funding by the Governor's Commission on Reform and Efficiency (CORE) found that Arden Hills' total expenditures on basic services were 28% below the basic spending level as defined in that study. Input and comment from the audience was invited. Tom Mulcahy, 3530 Siems Court questioned whether there is a maximum levy limit. He further commented he is not interested in the city providing additional services to the community. Councilmember Malone confirmed that levy limits no longer are applicable, and this law was appealed in 1992. Councilmember Malone further commented that a major reason in the shift of collection of tax revenue to residents is due to the industrial and commercial businesses appealing to the courts for . a reduction in their valuations. Councilmember Malone addressed the restoration of the General Fund balance and explained that the city recently received the December tax settlement payment from the County which had a revenue shortfall of $100,000. He further explained that the City's outside auditors suggest that the City begin year 1994 with a general fund balance of approximately $600,000. The reason for this request is that taxes are collected two times per year and the city receives little property tax dollars from the county until July. The city therefore could in some future year, need to borrow money by April if the $600,000 balance is not initiated on January I, 1994. Currently, the General Fund is not able to maintain a positive cashflow between receipt of these County tax settlement receipts. Councilmember Malone referred to the Pavement Management program and explained the city streets need repair. As the City ages, infrastructure needs increase and the city is budgeting for additional pavement management projects. (Councilmember Probst arrived at 7:50 p.m) . Eugene Richter, 3552 Glenarden Road questioned whether the City challenges these appeals made by the industrial and commercial .