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MINUTES OF THE ARDEN HILLS SPECIAL COUNCIL MEETING TUESDAY, DECEMBER 12. 1989, 7:30 P.M. - CITY HALL CALL TO ORDER Pursuant to due call and notice thereof, Mayor Sather called the meeting to order at 7:30 p.m. . ROLL CALL The roll being called the following members were present: Mayor Thomas Sather, Councilmernbers Paul Malone, JoAnn Growe and Thomas Mahowald. Absent: Councilmember Nancy Hansen. Also present: Clerk Administrator Gary Berger. PUBLIC HEARING 1990 BUDGET HEARING Mayor Sather opened the Public Hearing at 7:30 p.m. for the purpose of reviewing the Arden Hills proposed 1990 Budget and increased property tax levy. The Clerk Administrator verified publication of the Notice of Hearing in the St. Paul Dispatch/Pioneer Press on December 6, 1939. The Clerk Administrator advised two written comments were received at the City and are distributed for Council review this evening. Mayor Sather acknowledged receipt of two letters, one from Gregory J. Molenaar and the other from Hans Molenaar, 1550 West Highway 96, both letters expressing displeasure with the proposed property tax increase. Clerk Administrator Berger briefly reviewed the major changes in the 1990 Budget. He stated the most significant change affecting the 1990 Budget is the loss of approximately $111,714.00 in local government aid from the State of Minnesota. The City received the authority to increase its levy limit an equal amount to . compensate foy the reduction of government aid; the proposed tax increase is 8.4% higher than otherwise necessary due the aid loss. Berger reviewed the following budget documents: 1. Revenue Summary. 2. General Fund Revenues. 3. All Funds Revenues Summary. 4. Expenditures Summary. 5. Expenditures. 6. All Funds Expenditures. 7. Major Changes in Revenue - Summary of Expenditures/Revenues, outlining the methods of funding the 1990 Budget. Mayor Sather commented the expenditures portion of the budget under Park Fund improvements proposed for 1990, the total of $254.706.00 is funded from dedicated funds collected by the City in conjunction with land development. He advised the park fund has collected fees in the amount of approximately $430,000.00 over a number of years, therefore, those funds will not come from general tax levies. Councilmember Mahowald noted the State has shifted aid from cities to school . districts and therefore the levy increase for cities should result in a levy decrease for school districts; basically it is a "wash" for the Arden Hills taxpayers. Mahowald questioned the amount of the total General Fund increase for 1990. . The Clerk Administrator advised the amount is approximately 140.000.00 increase.