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ARDEN HILLS CITY COUNCIL—DECEMBER 11, 2023 10 projects in 2023 and so the City would be short on the revenue side by $120,000. He also noted that previous Finance Director Bauman made the assertion that regarding the potential for overages for 2023, she was not anticipating there would be any. He said he is not sure this is an accurate statement as we would not know until Quarter 1 of 2024, but that was her latest projection. Mayor Grant clarified for the record, there would be development projects occurring in Arden Hills in 2024. He noted they could not say specifically which ones but if you listen to the Planning Commission there are cases coming through, though not as large as some of the other projects, and to say there won't be any would be a bit of a stretch. He said the projects may not be as large as New Perspective or Arden Senior Living or something of that nature, though it is possible that it may happen. He stated he did not know that he wanted to bet the budget on it necessarily. Councilmember Holden asked if there was a party interested in the PACE building on Lexington. Community Development Director Jagoe reported this was the case noting the City Council would be reviewing this project at their January 8, 2024 meeting. Councilmember Holden indicated the Arby's building also had a project in the works. She asked if staff had an update on the North Heights project. Community Development Director Jagoe stated she has not received an update on this project, but noted the church still has a purchase agreement in place with the developer. She noted it was her understanding this purchase agreement would be in place through mid-2024. Councilmember Fabel stated based on his understanding the Council went through a very careful budgeting process and based on his confidence in staff, in addition to his inherent dislike of unbalanced budgets, he recommended the City Council keep the tax levy at 12.55%. MOTION: Councilmember Fabel moved and Councilmember Rousseau seconded a motion to adopt Resolution 2023-062 Setting the Final Tax Lew (12.55%) for Taxes Payable in 2024. Councilmember Rousseau stated she was not willing to bet the budget on two carwashes going into Arby's and the Pace site at this time. Councilmember Holden stated what Councilmember Fabel said was true, that staff provides the Council with their best estimates and they do a wonderful job. However, she did not see how 2024 would be different from any other year, in that the City would end the year with a surplus. Councilmember Monson explained she was concerned with how interest rates were rising and how this would impact or slow development in the coming year. She stated she did not want to kick the can down the road when it comes to the budget. She referenced conversations at the work sessions where Council talked about doing a franchise fee because Staff said the City will be short $400,000 and we need to have that coming in starting in 2025. She noted that (a franchise fee) is a fee on everybody, so there are advantages and disadvantages to that. She stated it also concerns