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AR-DEN HILLS CITY COUNCIL—December 14, 2009 21 7C. Approve the 2010 Capital Improvement Plan; Motion to Adopt Resolution 2009-040 Adopting the Proposed 2010 Budget; Motion to Adopt Resolution 2009- 041 Setting the Final Levy for Taxes Pay able in 2010 (continued) Councilmember Holmes stated that if the City has an issue with their contracts they need to correct those issues. Mayor Harpstead stated that the chart Councilmember McClung is referencing from the Pioneer Press points out an economy of scale. Shoreview is about two and a half times the size of Arden Hills on a per capita basis. Shoreview typically runs their police service with two districts worth of policing staff, one of which they subcontract out to North Oaks. They are covering about 25,000 people with 1.8 districts worth of cars. Arden Hills pays for a full district and they only have 10,000 people. Councilmember Grant agreed that with the size. of Arden Hills, they end up paying a little more for services. He would not scale back on the amount of policing. There is an item or two in the police budget that could be looked at closer and cut back. This will be discussed under Item 8C in greater detail. Councilmember Holden agreed with Councilmember McClung in that the City is paying for things that they should not be. She provided an example with the Lake Johanna Fire Department where the City paid for televisions for the fire department and that were not purchased and the City did not receive a credit for those funds. Things like steak figs and softball leagues should not be supported by the funds from the City and residents but rather by a relief fund. The City ends up paying the bill that is submitted and if those funds are not spent there is no credit back to the city Mayor Harpstead stated the fire department does have a clear fund balance policy that does indicate that the fund balance has a maximum set for it and the difference will be transferred into a capital fund, in which case it would reduce the cost of capital expenditures. There is not an unrestricted accumulation of funds into the fund balance. Councilmember Holden would like to know what the budgets are in reality for these types of services so that the City is not padding funds for organizations. Mayor Harpstead stated he understands Councilmember Holden's concerns. In some cases where they do make savings throughout the year these savings would accumulate in the capital account. The City would then see a reduction in costs for purchases based on these accumulations.