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ARDEN HILLS CITY COUNCIL — DECEMBER 11, 2023 10 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 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 reported she would be supporting the 12.55% tax levy. Mayor Grant indicated the budget was looked at very carefully every year. He was of the opinion the budget could easily accommodate a reduction down to 11 %. He commented on how he did not want to overtax the residents or businesses in the community. He understood this levy would not be in line with past levies due to inflation, which was driving up costs. He believed that with the levy at 12.55% there was room to provide some relief to the residents of Arden Hills and he would like to do that. Councilmember Monson stated passing a levy that has a deficit was in line with what the Council has done previously. She indicated this was what has been done and was being proposed for 2024. Mayor Grant was of the opinion the Council could go deeper. MOTION: Councilmember Fabel moved and Councilmember Monson seconded a motion to call the question. The motion carried 3-2 (Councilmember Holden and Mayor Grant opposed).