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ARDEN HILLS CITY COUNCIL WORK SESSION - AUGUST 18, 2008 7 Mayor Harpstead questioned the $46,000 in funds set aside for City Hall furniture in 2008 and asked if it would be used in 2008 or 2009. Finance Director Iverson indicated if the funds were not used in 2008 they would be transferred to a Capital Equipment fund to be used in 2009. City Administrator Moorse explained this was discussed at a recent staff meeting and that the timing was still uncertain. Councilmember Holmes asked if the enterprise funds were still struggling. Finance Director Iverson stated the fund was only showing revenue increases according to the previous rate study at this time. She explained the current rate study would be included after further discussion with Ehlers, and be back before the Council in October or November at a worksession. Finance Director Iverson noted the CIP would also be discussed at this time. Mayor Harpstead questioned if the proposed budget fell within the 3.9% levy limit. City Administrator Moorse stated this was the case noting the public safety and PERA levies were separate. He further explained the proposed budget for 2009 requires a 7.36% levy increase with 3.9% of that increase being from the general fund. The additional 3.46% increase would be levied for public safety. Finance Director Iverson noted the public safety numbers were subject to change and would be finalized by October. Finance Director Iverson explained how the levy limit percentage was calculated by the State of Minnesota. She indicated the current budget does have $110,063 in contingency funds as proposed at this time. Councilmember McClung indicated he would be in favor of certifying the maximum at this time allowing the City some flexibility with further evaluation to follow. Councilmember Grant stated he was not in favor of the $110,000 contingency, but would be more comfortable if this number were around $30,000-40,000.