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ARDEN HILLS CITY COUNCIL WORK SESSION-AUGUST 17 2009 10 but will be provided for the budget. He noted there was $64,000 in planning dollars within could reallocate to TCAAP, based on the Council's priorites. City Administrator Moorse further reviewed the increased items within the general fund as being annual pay adjustments, group insurance contribution increase, the recording secretary, increased contributions to NW Youth and Family Services, the newsletter, election expenses, police expenses (up 1%), and fire services (up 5.6%.) He explained the City's property and liability insurance increased due to claims from the City, and the last item was an increase in hours for interns in finance and support services. City Administrator Moorse stated the change in revenue for the City was the allotment of the market value homestead credit, which was $61,774, equivalent to 2.1% of the total tax levy. He noted the increase in expenditures along with the reduction in the market value homestead credit leaves a funding gap that needs to be filled through a proposed 4.8% levy increase for 20 10. City Administrator Moorse explained the property tax on an average-valued residential property within the City of Arden Hills would go from $551.50 to$628.38, which was an increase of$76.88. Mayor Harpstead questioned if the property tax percentage increase was calculated. Finance Director Iverson stated this was roughly 13.9%. City Administrator Moorse summarized the proposed tax levy information with the Council again noting the increase was 4.8%, with 2.1% of that due to the market value homestead credit. Discussion ensued regarding the major changes within the preliminary 2010 budget. Councilmember Holden questioned the proposed pay adjustments for 2010. She suggested a 3% cost of living adjustment (COLA) be written into the budget so that this item did not come back to hit the City harder in the future. Councilmember Holden stated staff could take leave without pay to keep the pay levels standard. Councilmember Holden indicated the 3% pay increase would be roughly the same as the expense of eight days without pay.