HomeMy WebLinkAbout08-27-07-WS
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Approved: October 29,2007
CITY OF ARDEN HILLS, MINNESOTA
CITY COUNCIL WORK SESSION
AUGUST 27, 2007; 6:12 P.M.
ARDEN HILLS CITY COUNCIL CHAMBERS
1. CALL TO ORDERJROLL CALL
Pursuant to due call and notice thereof, Mayor Stan Harpstead called to order the City
Council Work Session meeting at 6: 12 p.m.
Present:
Mayor Stan Harpstead, Councilmembers David Grant, Brenda Holden, and
David McClung. Fran Holmes arrived at 6:16 p.m.
Absent:
None
Also present: City Administrator Michelle Wolfe and Finance Director Sue Iverson
2. APPROVAL OF MEETING AGENDA
MOTION: Mayor Harpstead indicated there was one item on the agenda. The motion
carried (4-0).
3. AGENDA ITEMS
City Administrator Wolfe gave an introduction and overview ofthe agenda item.
Councilmember Holden asked what was budgeted for fuel, electricity and gas for 2008.
Finance Director Iverson indicated there was a slight increase from the 2007 budget.
Ouestions on Contingencv
Councilmember McClung was wondering if the figures excluded the fire and police.
Finance Director Iverson indicated that they did.
Mayor Harpstead asked if the budget included the Planner II and Deputy Clerk.
ARDEN HILLS CITY COUNCIL WORK SESSION - AUGUST 27, 2007
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Director Iverson indicated they did.
Mayor Harpstead questioned if the requests from the Economic Development Committee
were included in the budget.
Finance Director Iverson indicated she believed they were included.
Councilmember Grant asked about tax capacity.
Finance Director Iverson stated it went up to 7.3 percent. She also indicated the tax rate
could stay the same but that this could result in a 7 percent levy increase.
Mayor Harpstead asked about transferring monies into the capitaVequipment fund.
Finance Director Iverson indicated that has not been done yet.
Finance Director Iverson provided handouts of the impact of a 4%, 5%, and 6% tax levy
and if we maintained the same tax rate.
The county indicates the average market value for a single family residential homestead
in Arden Hills is $294,000.
Councilmember Hohnes had questions on the tax impact per household.
Finance Director Iverson explained the tax impact and dollar impact per household using
the handouts.
Councihnember Holden stated that we had to remember the school and county levies as
well.
Finance Director Iverson provided an update on how Arden Hills compared to other
metropolitan communities based on "effective tax rate" (ETR). She explained that this is
the rate when the city, county, and school district tax rates are combined.
In the Citizen's League 2006 Property Tax Review, the City's effective tax rate (ETR)
was 54 out of III metropolitan communities, with one being the highest and III being
the lowest. She stated that as a point of interest, Arden Hills itself was 91 st, Ramsey
County was number one, and Mounds View School District was 33rd She stated the
combination of these rates equated to the ranking of 54th. She explained that this
information showed that the City's tax rate was relatively low while Ramsey County's
rate was the highest in the metropolitan area.
Mayor Harpstead suggested 5% for two reasons. He also suggested designating I % for
capital equipment.
ARDEN HILLS CITY COUNCIL WORK SESSION - AUGUST 27, 2007
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Finance Director Iverson passed around a sheet comparing the preliminary levy amounts
to other cities.
Councihnember Grant expressed concern that the City could be affected by possibility of
levy limits. He expressed concern of adding percentages.
Councilmember Holden wanted to know the impact of a 3% increase in salaries and
benefits. She indicated she is not upset that the budget is late but would like to know the
total cost ofthe proj ects.
Councihnember Grant expressed concern with the idea of 5%.
Mayor Harpstead wanted to know the total for health care cost. Staff replied that final
numbers were not received from our brokers yet. A 10% increase was used for purposes
of preparing this budget.
Councilmember Holden asked about budget amendments.
Mayor Harpstead wanted Council's input on tax levy of 4.9%
Councihnember McClung............ ... .... ....... .... ......... 4%
Councilmember Grant....................... 4%, maybe 4.9%
Councilmember Holden. .................. ........... .... ........ 5%
Councilmember Hohnes ......................................... 5%
Mayor Harpstead.... ..... .... .... ....... ................. ......... 4.9%
It was indicated that the Council had the ability to decrease the amount at final levy.
Mayor Harpstead indicated he would like to start saving more money for roads in order to
lessen impact of assessments.
The Council's direction is to prepare a budget for 4.9% levy increase.
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Michelle Wolfe
Cl dministrator