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ARDEN HILLS CITY COUNCIL SPECIAL WORK SESSION — NOVEMBER 13, 2023 3 City Administrator Perrault replied that in the past number of years they've done better on the expenditure side mostly due to staff vacancies. He thought they had always done better on the revenue side but they are around $120,000 short of budgeted permit revenue. In past years they have been more like $200,000+ to the good of that. Mayor Grant asked where TCAAP revenue fits into this. City Administrator Perrault said there was no TCAAP revenue built into the projections. Mayor Grant stated the County is actively selling Outlot A, he thought they would close or at least have a developer agreement at the end of this year or beginning of next. City Administrator Perrault said it is expected the County will sell the property, a purchase agreement should come within the next couple of months, but the actual due diligence time for that construction project is 12-18 months. We would expect revenue to start coming in from that property in the next 3-5 years. Mayor Grant stated the City should expect to be reimbursed for about $100,000 in Planning costs. City Administrator Perrault explained they have a Planning Area Charge but he didn't know how that would equate to Outlot A. That wasn't built into the current budget. He felt they would get those funds at the time a building permit was pulled and it wouldn't be tied to the transaction. Councilmember Monson said in JDA discussions they anticipate a build out in 2025 or 2026. City Administrator Perrault stated they aren't privy to the purchase agreement and/or proceeds from it, but the current fee schedule has a Planning Area Charge built in which was intended to take $1,000,000 from across the TCAAP project. Councilmember Fabel said when he looks at the City Wide Budget Summary there is about a $4.3 million dollar deficit. Are they actually budgeting that? City Administrator Perrault responded that it is accurate, and the main driver of that is the Capital outlay projects, for example the $3 million PIR project coming up. He further explained the CIP. Councilmember Fabel asked why there was a $2.5 million spread between the charges for services in the Enterprise Fund versus the expenditures. City Administrator Perrault said it was mostly due to the capital outlay. There are projects and utilities coming up like the PIR sewer lining project that make up the balance but they set the rates so they cover themselves over the course of time. For example, the Water Funds rates should be healthy enough to cover the Water Fund for the 5-10 year period they are looking at. Councilmember Monson thought it was interesting that they are only looking at one year. She asked if the Council in the past ever considered looking 2 or 3 years out for budgeting purposes to avoid any large jumps or help fund certain projects or services without taking a big hit in a year?