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ARDEN HILLS CITY COUNCIL WORK SESSION - AUGUST 18, 2008 8 Finance Director Iverson reiterated the fact that not all budgetary numbers were final and that she would report back once the public safety numbers were set. Finance Director Iverson reviewed a handout of the tax impacts of levy increases with the Council. She stated a 6% levy increase would decrease the average residential homeowner's tax bill by $2.98 over last year. Finance Director Iverson explained that the proposed tax levy of 7.36% would increase the average residential homeowner's tax bill $4.86 for 2009. Finance Director Iverson indicated the local tax rate with a 6% levy would be 20.580. She stated with the 7.36% levy the tax rate would be 20.859. Councilmember Holmes stated she was in favor of the maximum levy to provide additional funds to be invested back into the City of Arden Hills. Mayor Harpstead agreed stating the residents would be receptive to an investment in infrastructure. It was the consensus of the City Council to direct staff to proceed with the budget at a 7.36% levy limit. This item will be further discussed at the September 8th meeting when the preliminary levy is approved. B. Discussion Regarding the Release and Settlement Agreement for the 3327 Dunlap Street Driveway Public Works Director Hoag presented the City Council with information regarding the property at 3327 Dunlap Street. He explained that last November a watermain broke underneath this property, which had a brand new driveway, complete with two year warranty. The resident was not happy with the replacement patch and asked that the driveway be replaced. Public Works Director Hoag indicated the resident was not satisfied with the suggestion of a saw cut replacement or patch job on the driveway. He noted he spoke with the City attorney on this issue. After much discussion, he is asking that the driveway be completely replaced to appease the resident and to provide her with a warranty.