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e e ARDEN HILLS TRUTH-IN-TAXATION - DECEMBER 6,1999 DRAFT 7 in 2000. The project was now expected to begin in the spring and be completed in the fall of 2000. Slide #14, Glossary of Terms, defmed some ofthe terms used during property tax discussions. Mr. Caldwell asked if the City had planned to discuss possible action to rectify the discrepancies in the amount of State Aid received by the City of Arden Hills compared to other similar cities. Mr. Post stated that the City had no plans to take action with regard to the Local Government Aid. He indicated that he had spoken with the Department of Revenue on several occasions, pointing out the inconsistencies which he felt should be rectified. The Department of Revenue was remaining firm with regard to the action that was taken in the 1980's to withhold HACA funds from the City of Arden Hills. Mr. Caldwell noted that circumstances have changed significantly since the 1980's. He added that the State of Minnesota was feeling discriminated against in terms of Medicare reimbursements. At the present time, the Senior Federation was suing the Federal Government which will draw attention to the issue. Mr. Post stated that he would distribute the information as widely as possible regarding the local State Aid in order to point out the disparity of the distribution. He indicated that the solution may not be within the Department of Revenue, rather it will have to be a Legislative Bill. Mayor Probst noted that in order for the City of Arden Hills to receive more State Aid, another community will have to receive less. Councilmember Aplikowski added that the representatives of Arden Hills represent other cities as well and would prefer to reduce rather than increase the amount of State Aid being received by any city. Councilmember Larson requested an explanation of where the revenue for the Advance Refunding Bond Fund #315 comes from and requested confirmation that these funds will be transferred to the Municipal Land and Buildings Fund #408. Mr. Post explained that the revenues for the Advance Refunding Bond come from special assessments. In the late 1960's and early 1970's, the City of Arden Hills created the majority of the City's sanitary sewer and water infrastructure. This construction was financed through a bond that was to be paid by long term special assessments. During times that the interest rates were low and it was advantageous to refinance bonds, the City did so and benefited from the fact that some residents chose to pay off their assessments early. Over the years, the City accumulated revenues in excess of debt service requirements. PUBLIC COMMENTS Mayor Probst invited those present to come forward and address the Council on any questions or concerns they may have regarding the 2000 proposed budget. e Mr. Wilson commended staff for the Truth-in- Taxation presentation.