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<br />ARDEN HILLS CITY COUNCIL - December 8, 2008 <br /> <br />21 <br /> <br />for the residents of Arden Hills. He proposed that the Council consider lowering <br />the levy to 4.9%. This amount could be pulled out of the budget from such items as <br />the contingency. He asked how much under budget the City was for 2008. <br /> <br />Finance Director Iverson stated that she did not have the exact figures but <br />estimated it to be around $80,000. <br /> <br />Councilmember Grant stated that the difference could also be pulled out of the <br />fuel increases since the price of fuel is down from where it was earlier in the year <br />and the City is paying less for their fuel. <br /> <br />Public Works Director Hoag stated that he had not contacted Ramsey County to <br />find out what their current price per gallon was. He stated that their price per gallon <br />does fluctuate based on when the tank is empty and what the current price is at that <br />time. <br /> <br />Councilmember Grant stated that based upon the information that was provided it <br />looked like a tank lasted about five months and the price per gallon is dramatically <br />lower than it was even five months ago. <br /> <br />Mayor Harpstead clarified that, based upon the City's performance, cuts could be <br />managed. He stated that the risk that the City carries is if the State cuts the Market <br />Value Homestead Credit the levy would not be able to be adjusted mid-year to <br />account for this decrease in funds. <br /> <br />Councilmember Grant stated that this needed to be balanced against a community <br />that has a fair amount of seniors that are living on fixed incomes and people are <br />struggling. It is reasonable for the City to find $29,000 in cuts they can make. He <br />stated that this would not save people a large amount on their tax bills but rather a <br />show of good faith on the part of the City. <br /> <br />Mayor Harpstead stated that Staff has done a good job in the past of cutting out <br />any unnecessary expenses. <br /> <br />Councilmember Grant stated that this was reflected in the current year in that the <br />City is under budget by about $80,000. <br /> <br />Councilmember Grant stated that with levy limits being on the City needs to be <br />cautious not to go to low because the levy will not be able to be raised in future <br />years. <br />