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<br />ARDEN HILLS CITY COUNCIL - December 8, 2008 <br /> <br />20 <br /> <br />Councilmember Holmes stated that several residents have read that the levy is <br />going to go up and they assume that when the levy goes up their taxes go up. She <br />emphasized that the average person's rate in Arden Hills is going down slightly. <br /> <br />Finance Director Iverson stated that this was correct. The City will only receive <br />as much as they levy. The levy amount is distributed among everyone based on <br />their taxable market value and when their market value changes so does their <br />portion of the levy. <br /> <br />Councilmember Holden asked if the State had talked about withholding any MSA <br />money from the City. <br /> <br />City Administrator Moorse stated that at this time he has not heard this. The <br />LGA and the Market Value Homestead Credit have been talked about but not the <br />MSA. <br /> <br />Councilmember Holden asked what the City received for Market Value <br />Homestead Credit funds. <br /> <br />Finance Director Iverson stated that the City receives about $54,000 and the City <br />has received the first half of these funds so they could potentially loose $27,000 this <br />year. She did not have an estimate for next year but compared to 2008 the amount <br />could be $54,000 next year <br /> <br />Councilmember McClung clarified that the Govemor had the power to unallocate <br />funds and this is what was being considered and could impact the City's LGA and <br />Market Value Credit. <br /> <br />Finance Director Iverson stated that this was correct. The City currently does not <br />receive LGA. <br /> <br />Finance Director Iverson continued the presentation explaining the City's <br />estimated costs for City services and the distribution of the money received from <br />homeowner's taxes. <br /> <br />Councilmember Grant stated that 1% of the levy would equate to about $29,000. <br />When the Council set the levy they set it at the maximum allowed by law. <br /> <br />Finance Director Iverson stated that this is correct. <br /> <br />Councilmember Grant stated that the City needs to consider lowering the levy <br />because times are tough for people at this time. This would be a good show of faith <br />