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Mounds View City Council September 9, 2024 Regular Meeting Page 7 1 Council Member Clark supported the Council further discussing the levy in order to make 2 additional cuts. 3 4 Council Member Gunn stated she understood further discussions could be held,but noted the City 5 ran with a lean staff which made cuts difficult. 6 7 Mayor Lindstrom reported the Council could approve a 6.5% levy increase by placing $70,000 in 8 Medtronic money into the budget, but this would mean the City was deficit spending, or another 9 source would have to be found to cover the deficit. 10 t t Council Member Meehlhause commented there was an opportunity to cut into the built in deficit 12 that has been in place since 2008, noting this would free up funding to meet the needs of the City. 13 He stated the City was working on a parks master plan and there were streets that still needed to 14 be completed. He believed he heard at the worksession meeting that the majority was willing to 15 approve a levy that would lead to a balanced budget with no deficit spending plan and that this 16 could be adjusted between now and December if there was a difference of opinion. 17 18 Mayor Lindstrom commented the 9.13%proposed tax levy increase was inclusive of debt service, 19 the street levy and the referendum levies. He discussed how the City could drop the street levy, 20 but noted this would lead to assessments for property owners and he did not anticipate any 21 homeowner wanted to write a check for $8,000 when their street was redone at some point in the 22 future. 23 24 Dr. Jean Strait, 7728 Knollwood Drive, stated it was not fair to threaten assessments when 25 considering a tax levy. She questioned where the City got $400,000 to cover the expenses for the 26 community center exploration and garbage collection work. She indicated the City had so many 27 residents that were living on a fixed income and she believed taxes were too high. She stated 28 Mounds View was not Bloomington or St.Paul. She explained she wanted Mounds View to remain 29 a great community,but she feared the City Council was bleeding its residents dry by being fiscally 30 irresponsible by spending money on the wrong things. She urged the City to get out of deficit 31 spending and to begin making some tough decisions when it comes to the budget. She stated if the 32 Council were to move forward with a 9.13% tax levy, she would be knocking on doors in the 33 community to do everything she could to get residents to speak against this tax levy. She indicated 34 she wanted to be supportive of the Council, but the proposed tax levy was ridiculous. 35 36 Council Member Meehlhause discussed how the planned deficit spending was put in place to assist 37 the City Council with managing its budget since 2008. 38 39 Brian Amundsen, 3048 Woodale Drive,reminded the Council that the Charter has limits.He noted 40 the current limit is 9%, if four Councilmembers agree. He indicated if only three supported a 9% 41 increase, then the levy increase would be reduced to 6.5%. He noted the Council could also get 42 out of deficit spending by asking the voters to support a levy increase. He provided historical 43 information on the Medtronic sale noting the amount set aside from Medtronic was to allow the 44 City to continue to provide services that were going to be burdens on the City because of the 45 Medtronic build, like well maintenance and waste management. He noted the funding was not set 46 aside for special expenses. He indicated the Council has chosen to do deficit spending. He reported