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Mounds View City Council December 11, 2023 Regular Meeting Page 6 2 Council Member Meehlhause asked when the EDA levy was implemented. Finance Director 3 Bauman indicated this began in 2017 and totaled $60,000. She stated in 2018 the amount was 4 increased to $100,000 and has remained this amount since 2018. 6 Mayor Lindstrom opened the public hearing at 6:49 p.m. 8 Brian Amundsen, 3048 Woodale Drive, thanked the Council for approving a lower levy amount 9 that was previously discussed. He explained after reviewing Resolution 9833, which was the 10 budget for all funds, he was confused by the numbers. He commented on the actuals from previous 11 budgets and stated he did not believe the actuals justified some of the numbers within the 2024 12 budget, due to significant increases. He asked why the budget was done against the budget versus 13 being done against actuals. He questioned why there was an almost 40% increase at the Public 14 Works Buildings and Grounds. He indicated it appears the City was spending nearly $250,000 on 15 the EDA each year and was levying $100,000. He noted his biggest concern was that the summary 16 page shows a fund balance with a negative $4.6 million. He inquired why the Council doesn't have 17 more information on their fund balances prior to approving a budget for the coming year. 18 i 9 Valerie Amundsen, 3048 Woodale Drive, questioned if the Council was given information 20 regarding its fund balances. She indicated she was a fan of zero based budgeting. While she 21 understood inflation was a factor, she also understood the City may not spend all of its dollars. She 22 asked the Council to ask some tough questions. She discussed how someday, the funds from the 23 Medtronic sale would dry up and the City would have to consider what to do. She asked the 24 Council to buckle down and take a closer look at the numbers. 25 26 Hearing no further public input, Mayor Lindstrom closed the public hearing at 6:57 p.m. 27 28 MOTION/SECOND: Gunn/Meehlhause. To Waive the Reading and Adopt Resolution 9831, 29 Adopting the 2024 Tax Levy at 6.25%. 30 31 City Administrator Zikmund explained the City Council receives budget updates versus actuals on 32 a quarterly basis. He noted this information would be reviewed and approved by the City Council 33 on a quarterly basis going forward. 34 35 Council Member Gunn reported the Council reviewed the budget on a line by line basis so the 36 Council understood what items were and were not included in the budget. 37 38 Council Member Meehlhause discussed how previous staffing shortages impacted the budget. He 39 indicated the police department was constantly working to get back up to 21 officers. He 40 commented on how the proposed budget included wage increases of over $300,000. He stated 41 these increases were being driven by salary increases, union contracts and inflation. He noted there 42 were other contracts with increases that also impacted the budget such as Ramsey County Dispatch 43 and the SBM Fire Department. He reported it was difficult to start with a zero based budget when 44 the City was dealing with contracts with employees. He requested further information regarding 45 the $4 million change to the fund balance. Finance Director Bauman provided the Council with 46 further information regarding the City's fund balances. She explained there were several fund